so now over $150!!, page-9

Cheers Milenko. RIO runs strong and is trading near 2012 peaks.

The latest 58% fines spot trades are going through at $150/t... that's approx a $55/t margin against my estimated all in costs of $95/t for AGO. If the market balances here then expect AGO to be making over $400m NPBT per year at an 8mtpa run rate... or about 45cents per share. Now imagine the upside at a 40mtpa run rate??? :D :D :D

Apparently Credit Suisse have been doing the rounds the past week with a sales pitch to investment funds (for a fee of course) that IO will collapse to $90/t very soon. Obviously some have been frightened, but I can't understand why anyone listens to Discredited Suits. They were forecast IO at $150/t in 2012, then they changed their forecasts in Sep2012 to $50/t with a rebound to $100/t by the end of 2012 followed by a fade to $90/t in 2013. They should be out of the job with the amount they've cost their clients, but when your clients are super funds and with compulsory super to keep feeding the machine, who knows when this insanity will end.